IATA: Jul-2017 shows record load factors and strong but moderating demand growth

    IATA released (06-Sep-2017) its statistics for international passenger demand for Jul-2017:

    • Global: Traffic grew 6.8% year-on-year, while capacity climbed 5.5%, and load factor edged up 0.5 percentage points to 84.6%. Growth was a slow-down compared to the 7.6% growth recorded in Jun-2016;
    • Europe: Traffic up 7.5%, down from 8.8% in Jun-2017. Capacity rose 5.9%, and load factor climbed 1.3 ppts to 88.7%, which was the highest among the regions. The economic backdrop in Europe has strengthened; however, on a seasonally-adjusted basis, the upward growth in travel demand has moderated sharply since Feb-2017;
    • Asia Pacific: Traffic up 5.9%, a deceleration compared to Jun-2017 growth of 8.8%. As with Europe, carriers in the Asia Pacific region are seeing a slowing of demand growth. Capacity increased 6.7% and load factor slipped 0.6 ppts to 81.0%;
    • Middle East: Traffic up 4.5%, an acceleration from the 3.6% in Jun-2017, but was still well off the region’s five-year average pace of 11.2%. Capacity grew 3.6% and load factor rose 0.7 ppts to 81.5%. Middle EastNorth America market has been affected by a combination of factors in 2017, including the recently-lifted cabin ban on large portable electronic devices, as well as a wider impact from the proposed travel bans to the US. Traffic growth on the Middle East-US route was already slowing in early 2017, in line with a moderation in the pace of expansion of nonstop services flown by the largest Middle Eastern airlines;
    • North America: Traffic up 3.5%, down from 4.4% growth in Jun-2017 but still ahead of the regional five-year average pace (2.9%). Capacity rose 3.8% and load factor slipped 0.3 ppts to 85.9%. Outbound travel is being supported by the relatively solid economic backdrop in North America; however, anecdotal evidence suggests that inbound demand is being negatively influenced by the additional security measures in place for travel to the US;
    • Latin America: Traffic up 10.5% the strongest growth among regions. Capacity increased 10%, and load factor climbed 0.4 percentage points to 84.9%. International volumes between North and Central America continue to strongly trend upward while traffic on the North-South Americamarket segment has also started to trend upwards, in part helped by the healthier, albeit still fragile, economic backdrop in Brazil;
    • Africa: Traffic up 6.5%, down from 9.8% demand growth in Jun-2017. Capacity rose 1.7%, and load factor jumped 3.4 pppt to 74.1%. Conditions in the region’s two largest economies continue to diverge, with South Africa in recession while business confidence levels are at a two-year peak in Nigeria. [more – original PR]